Bitcoin Bounces Back as Analysts Eye $180K Target

Bitcoin entered 2025 with a bullish roar, rebounding from its December "slump" to $90,000, a number that sounds absurdly high to crypto OGs but still manages to spook the newcomers. Fear not, HODLers: Bitcoin has surged over 7% in just three days, crossing $96,000 and briefly flirting with $97,750. While it’s still shy of its $108,850 all-time high, optimism abounds, with market chatter pointing to a strong Q1 recovery. Adding spice to the speculation is talk that President-elect Trump might greenlight a first-ever Bitcoin Reserve.

MicroStrategy added another $209 million to its Bitcoin hoard, and VanEck analysts see the coin hitting $180,000 by year-end. Meanwhile, the “January effect” and hopes for a Q1 bull market peak are fueling speculative fervor.

The Fed, however, remains a wildcard. Reducing 2025’s projected rate cuts from four to two, it’s sticking to a cautious 0.25% cut, setting the funds rate at 4.25%–4.50%. This hawkish shift could put pressure on Bitcoin, as seen during the November 2021 tightening cycle.

Over in ETF land, BlackRock’s IBIT ETF faced its biggest single-day redemption since launch, with $332.6 million (3,413 BTC) withdrawn on January 2. The move, part of year-end rebalancing, capped a blockbuster year where Bitcoin ETFs amassed $70 billion, narrowing the gap with gold ETFs at $130 billion. It’s a sign of the maturing institutional crypto market, where even with BlackRock in your corner, some investors still play it safe